Analysts Rush to Googles Aid

It seems that Google has some quick footed backers trying to keep its price from breaking through 11 month lows.

Steve Weinstein of Pacific Crest told clients Wednesday that the
comScore data is likely an "inaccurate predictor" of Google's results. He said
he spoke to search-engine optimization firms and ad agencies "who indicated that
they are seeing much stronger growth trends in lead volume and spending than
what was implied by comScore" for the month of January.

I'm still not sure why firms would cut back on paid search unless the economy truly starts to implode. You would figure that a company would have even more onus to move to a medium that is cheaper and easier to track like paid search rather than sticking with traditional TV and print. Firms may cut their advertising in local newspapers and Yellow Pages in exchange for ramping up their Net presence. These companies can easily control their clickthroughs and fine-tune their message in order to keep a tighter control of their spending.

I mean companies do slash their Ad budgets when the economy slows but it would probably end up hurting their brand when the economy picks up again. This article has a great breakdown of what the Ad spending market will be like for 2008. I agree that Google will probably not feel the effects of a possible recession as much as a truly retail sensitive business like Amazon will. In any case it looks like a good time to load up on some Google in the mid to high 400s.